The proposal would place a limit on the remuneration payable by providers of financial services.

• A cap on base remuneration would be set at ten times annualised average weekly earnings (currently $869,795).
• A cap on variable remuneration would be set at five times annualised average weekly earnings (currently $434,898).

The caps would apply to ‘accountable persons’ of authorised deposit-taking institutions as described in the Treasury Laws Amendment (Banking Executive Accountability and Related Measures) Act 2018.

The cap would also apply to ‘accountable persons’ of Australian Prudential Regulation Authority (APRA)-regulated superannuation funds and insurance providers defined as executives on the board of such institutions.

The proposal would take effect from 1 July 2019.